TLDR: Indian Finance Minister Nirmala Sitharaman warned the fintech sector about the escalating misuse of Artificial Intelligence, citing personal experience with deepfake videos. Speaking at the 6th Global FinTech Fest 2025, she emphasized that AI-driven fraud is shifting from ‘breaching systems’ to ‘hacking trust.’ Sitharaman highlighted new regulatory measures by SEBI and NPCI to combat digital fraud and urged fintech companies to prioritize responsible innovation, compliance, and sustainability. She also underscored India’s growing prominence in the global AI landscape, backed by initiatives like the $1.3 billion IndiaAI Mission.
Mumbai, October 8, 2025 – India’s Finance Minister Nirmala Sitharaman issued a stern warning regarding the burgeoning misuse of Artificial Intelligence (AI) at the 6th Global FinTech Fest 2025 in Mumbai. The Minister revealed she has personally encountered several deepfake videos of herself circulating online, underscoring the urgent need for heightened awareness and robust safeguards within the financial technology sector.
Sitharaman articulated that the new generation of fraud is no longer about ‘breaching systems’ but rather about ‘hacking trust.’ She cautioned that criminals are increasingly leveraging AI to mimic voices, clone identities, and create highly convincing fake videos designed to manipulate and mislead the public. This emerging threat, she noted, highlights how advanced technology is being weaponized to erode public confidence in digital spaces.
In response to these growing risks, the Finance Minister welcomed proactive measures introduced by financial regulators. The Securities and Exchange Board of India (SEBI) and the National Payments Corporation of India (NPCI) have jointly launched a verified UPI handle system for SEBI-registered intermediaries. This system incorporates category-specific suffixes, such as ‘.brk’ for brokers and ‘.mf’ for mutual funds, to ensure secure and verified payment channels. According to Sitharaman, over 90 percent of major brokers and all mutual funds have already adopted this system. Additionally, SEBI has introduced ‘SEBI Check,’ a verification tool accessible via its web portal and the Saarthi app, allowing investors to confirm UPI IDs and bank details of registered intermediaries before initiating payments. This system employs privacy-preserving verification, secure data handling, and real-time monitoring to detect mismatches and prevent fraud.
Addressing the fintech industry, Sitharaman urged companies to focus on sustainability, profitability, and compliance while continuing to foster innovation. She famously remarked, ‘Responsible regulation is not a brake on progress; it’s a seatbelt for safe acceleration,’ advocating for a balanced approach to technological advancement and oversight.
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The Minister also highlighted India’s significant strides in the global AI landscape. She pointed to the ambitious $1.3 billion IndiaAI Mission and stated that India contributes 16 percent of global AI talent, positioning the country among the top three AI talent markets worldwide. Sitharaman expressed confidence that India has the potential to become a global hub for AI innovation, serving as a ‘laboratory for developing and testing new technologies that serve diverse global needs.’ She projected that AI-enabled Global Capability Centres (GCCs) could account for up to 35 percent of India’s AI services revenue by 2028. The government’s commitment to fostering innovation was further underscored by mentioning initiatives like Aadhaar, UPI, the Account Aggregator framework, and DigiLocker, which have collectively transformed the financial ecosystem and improved access to public services.
